First Gen wins bidding for two Philippines hydros

A unit of Philippines independent power producer First Gen Corp. won a privatization auction September 8 of two National Power Corp. hydropower plants.

Power Sector Assets and Liabilities Management Corp. (PSALM) said First Generation Hydropower Corp. won bidding for the 112-MW Pantabangan-Masiway hydroelectric complex, offering US$129 million. (HNN 3/3/06)

First Gen topped the bid of SN Aboitiz Power Inc. — a joint venture between Philippine firm Aboitiz Power Corp. and Singapore’s SN Power Holding — which offered US$112 million.

“Both bids were way above the reserve price,” a government source said, declining to disclose that level.

Industry sources said the government gave a reserve price of US$80 million for Pantabangan-Masiway, which includes the 100-MW Pantabangan and 12-MW Masiway hydro projects in the northern Philippines.

“We are very happy with the offers. Clearly, this is the result of good competition and continued interest in Philippine power assets,” Energy Secretary Raphael Lotilla said.

The government said First Generation will be required to make an up-front payment of at least 40 percent of its winning bid. The balance will be made in 14 semi-annual payments with an interest of 12 percent each year. The winning bidder is also required to post a performance bond of US$2.58 million.

Pantabangan has two 50-MW units that were commissioned in 1977, while Masiway has a single 12-MW unit commissioned in 1980. Both are located at Pantabangan, Nueva Ecija, on Luzon.

PSALM next plans to auction 360-MW Magat hydro

The power asset sale was the Philippines’ first in nearly two years as PSALM attempts to privatize power plants of the debt-laden National Power Corp. (Napocor). It failed to sell the 600-MW Calaca coal-fired plant after offers fell short of its reserve price.

PSALM President Nieves Osorio said the government next plans to sell the 360-MW Magat hydroelectric complex in Isabela province in northern Philippines and a 25-year concession contract for the National Transmission Corp. (TransCo).

Earlier this year, PSALM said 13 prospective bidders expressed interest in Magat, which it had said would be auctioned in the third quarter of 2006. Magat has four 90-MW units commissioned in 1983-1984 at Ramon, Isabella, Luzon.

For information, contact Froilan A. Tampinco, Vice President, Asset Valuation and Disposal, Power Sector Assets and Liabilities Management Corp., 2nd Floor, SGV II Building, Ayala Avenue, Makati City, Philippines; (63) 2-8938202, extension 202; Fax: (63) 2-8403896; E-mail:; Internet:

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